Question

29) Financing activities include

a) acquiring investments.

b) lending money.

c) acquiring long-lived assets.

d) issuing debt.

31) Which of the following increases cash?

a) depreciation expense

b) borrowing money by issuing a six-month note

c) the declaration of a cash dividend

d) acquisition of treasury stock

32) Which of the following would not be classified as an operating activity?

a) interest expense

b) income taxes

c) payment of dividends

d) selling expenses

Answer 1

29.d.issuing debt.

financing activities include issuing debt, which results in cash inflow from financing activities.

acquiring long lived assets will result in investing activities, lending money may be termed as investng or operating activities depending on type of business the entity does.

31b.borrowing money by issuing a six month note.

depreciation expense does not affect cash.

declaration of cash dividend and acquistion of treasury stock decreases cash.

32.c.payment of dividends.

payment of dividends is a financing activities and rest all are operating activities.